ADVERTISEMENT

Cautious optimism before GDP stats announced

Food

With a string of positive economic reports recently released – strong quarterly results from publicly-traded giants Magyar Telekom and MOL followed by today’s report from the Central Statistics Office (KSH) showing a lower-than-expected inflation rate for July among them – the latest round of Hungary’s GDP figures tomorrow has become more anticipated than ever.

The Wall Street Journal expects the numbers, along with those of Poland and the Czech Republic, also to be delivered tomorrow, to indicate that the three economies have “turned the corner” to see “light at the end of the tunnel for countries hit by the Eurozone debt crisis.

In a post entitled “Central Europe Expected to Turn Economic Corner,” WSJ writer Veronika Gulyas writes that Hungary “is seen to have swung to annual growth from contraction a quarter earlier.”

The remarks in the Journal echo a forecast from Portfolio; according to its poll of analysts, tomorrow’s numbers will “likely confirm” Hungary’s emergence from recent recession. This analysis guesses that the Hungarian economy grew some 0.6% year-on-year after also increasing 0.7% quarter-on-quarter during the first three months of 2013.

Specific big increases are expected in the construction and agricultural sectors as well: On Monday, building sector association ÉVOSz announced results of its survey of construction-related businesses yesterday, figuring that Hungary’s construction industry expanded in the first half of the year – though due mostly to industrial-sector and infrastructure projects.

The surprising inflation rate for Hungary as well as the Czech Republic should have positive effects elsewhere: BRE economist Marcin Mazurek was quoted at WSJ as explaining that the results in these two countries “slightly increase the chance that Poland inflation will also surprise on the downside due to slower rise in food prices.”

ADVERTISEMENT

Rate-setters augur slower decline in CPI in 2022 Analysis

Rate-setters augur slower decline in CPI in 2022

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

Magyar Bankholding chairman to serve as CEO as well Appointments

Magyar Bankholding chairman to serve as CEO as well

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.